Permian CCS Center · Hydrogen Energy California Kern County, CA Rectisol 2,000,000 2016 Post-Combustion Capture Basin Electric Beulah, ND Amine 5,00,000 - 1,000,000 2014 NRG Energy

Permian CCS Center

Southwest Petroleum Short

Course

April 20 – 21, 2011

Robert D. Kiker

Applied Petroleum

Technology Academy

Carbon Capture & Storage Technology

TOPIC OUTLINE

• What is the Permian Basin Carbon Capture and

Storage Training Center?

• Training Media

• Other CCS Training Centers

• Changing Focus

• Operations Workshop Highlights

About Permian CCS Center

• World class training in carbon capture and storage (and

EOR) for and by industry professionals, focusing on

individuals in the Permian Basin but through online

presence available to individuals throughout the U.S.

and the world

• Stimulated by a grant for the National Energy

Technology Laboratory of the DOE and the American

Recovery and Reinvestment Act of 2009

• Efforts guided by and Industry Advisory Board

Permian Basin CCS Approach

• By and For Industry – Industry organizations

instructing industry professionals

• Targeted audience of wide range of energy

professionals potentially involved in CCS, engineers,

geoscientists, regulators, academia

• Its all about the money: for the individuals to advance,

for PBCCS to become self-sustaining

Three World Class Organizations

Petroleum Technology Transfer CouncilTech Transfer, Workshops, Newsletter, Tech Alerts

American Association of Petroleum Geologists

37,000 Members, Publications and Conferences

Distance Learning

Applied Petroleum Technology AcademyCO2 Course, CO2 Conference

Major Elements of Permian Basin CCS

• Week-Long Short Course (APTA) – Industry

Professionals instructing Industry Professionals

• Series of One-Day Workshops and Webinars (PTTC)

• E-Certificate (AAPG) and free Open Courseware

• Augmented by www.permianbasinccs.org, Newsletter,

e-alert

www.permianbasinccs.org

Permian CCS Workshops

Extended Length Workshop (4 ½ days) contains most of the

aggregate material found in the 1 day works listed below

• Overview of the Elements of CCS – CCS (and CO2 Flooding in

the Permian Basin)

• Site Selection and Operations – The Reservoir –

Characterization, Modeling and Monitoring

• CO2 Flood Operations & Surface Facilities – CO2 Sources and

Capture Technology

• Business of CO2 Flooding and Moving Forward with CCS

Webinars – Slides and Voice

• The Promise and Performance of Next Generation CO2-

EOR by Advanced Resources International with Vello

Kuuskraa and Michael Godec

• CCS (and CO2 Flooding) in the Permian Basin – An

Overview of the Science and Training Program with

Steve Melzer and Dwight Rychel

• CCS in the Permian Basin, The Reservoir –

Characterization, Modeling and Monitoring with Steve

Melzer and Bob Trentham

Free Open Courseware - AAPG

• Carbon Capture and Sequestration: An

Introduction

• Geological Models in CO2 Separation

• CO2 Supply, Demand: Legal and Regulatory

Issues

• CO2 Separation, Compression, Transportation

and Marketing

Permian CCS e-Cert Program

• Online program

• Proceed at your own pace

• Certification after demonstrated learning

• Similar topics as short courses

• Structure the same as recent AAPG Solar Energy

Program

Other CCS Training Organizations

Midwest Geological Sequestration Consortium – Sequestration Training and Education

Center – MGSC-STTC (http://sequestration.org/step/index.html) by Illinois State

Geological Survey.

Carbon Capture and Storage Training (CCST) Northwest – Carbon Tech Alliance

(www.carbontechalliance.org) by Environmental Outreach and Stewardship Alliance.

Southwestern United States CO2 Sequestration Training Center – CO2TC (New

Mexico Institute of Mining and Technology)

www.southwestcarbonpartnership.org/default.aspx.

Southeast Regional CO2 Sequestration Technology Training Program – SECARB-Ed

(www.sseb.org/secarb-ed.php) by Southern States Energy Board (www.sseb.org).

Sequestration Training, Outreach, Research & Education – STORE

(www.storeco2now.com) by University of Texas at Austin..

Wyoming CCS Technology Institute – WCTI (http://wcti.uwyo.edu) by University of

Wyoming.

Permian Basin CCS Training Center

What Has Worked• Highly Qualified and Responsive Advisory Board

• Newsletter and e-Alert Informative, hundreds of readers

• Broad Encompassing Curriculum

• Structure in place for first two short Courses and

Webinars

Permian Basin CCS Training Center

Challenges• Lack of congressional action regarding climate control providing

incentives to capture and sequester CO2 causing otherwise

interested parties to lose interest

• Targeted Oil and Gas Professionals in Permian Basin have skills

in place for sequestration via CO2 EOR and little interest in

geological storage in saline formations

• Consequently low interest in early produced workshops and

webinars

Permian Basin CCS Training Center

Where We Are Today• Broadened targeted audience to include regulators,

environmentalists, scientists, electric generating

industry and other CCS stakeholders

• Slowed the pace of delivery somewhat until the

audience is broadened and some hope of legislation

emerges

• Focused more on electronic delivery, versus the local

workshops

Operations Workshop Topics

• CO2 Flood Operations

• Wellsite Surface Equipment

• Downhole Design and Considerations

• Operational Features Peculiar to CO2 Injection Projects

• Examples of Operator Differences

• Review of Anthropogenic Sources and Existing and Future

Capture Technologies

• Dehydration Processes

• Compression Facilities

• Sulfur Removal

• Recycle Plants

21

Typical CO2 / Waterflood Operation

INJECTION

WELL

PRODUCTION

WELL

CO2 REMOVAL

FACILITIES,

COMPRESSION &

DEHYDRATION

METER

SKID

LACT

OIL

TANKS

WATER

TANKS

FWKO

HEATER

TREATER

GAS

SCRUBBERPRODUCTION

SEPARATOR

TEST

SEPARATOR

FREE

GAS KO

OIL

SALES

NATURAL

GAS SALESMAKE-UP

CO2

RECYCLE

CO2

22

Field Flow Diagram

Oil Reservoir

Producing Well

Injector

Test Station

CO2 Recovery Plant

Tank Battery

Water Injection

Oil Sales

NGL Sales

Gas Sales

CO2 Purchase Line

CO2 Recycle

Sulfur Sales

23

Prod. Well

Inj. Well

Gas Compr.

Tank BatteryTest Sat.

Water Inj. Stat.

CO2 Rec. Plant

CO2 Purchase

Oil, Wtr, Gas/CO2Gas/CO2

Gas/CO2NGL Sale

Gas Sale

Oil Sale

Sulfur Sale

Water

Water

CO2 Recycle

CO2 Purch

Field Flow Diagram

Surface Equipment

Design Considerations

Production Equipment/Vessels

Headers

Separators-2 & 3 phase

FWKO

FGKO

Tanks

Oil & Water

Vapor Recovery

Water Injection Equipment

25

Production Equipment - Vessels

• Production Separator– 2-phase

– Eliminates large gas volumes at test site

– Disperses slugs and surges

• Free Gas Knock Out– 2-phase

– Eliminates large gas volumes

– Regulates fluid delivery to FWKO

26

Production Equipment - Vessels

• Free Water Knock Out

– 2-phase (fluid packed), or

– 3-phase

• Heater-Treater

– 3-phase

– Vertical or horizontal

– Oil/water separation

• Gas Scrubber

– 2-phase

– Separates carry over fluids

27

Production Equipment - Vessels

• Design Considerations

– Operating pressure

– Operating temperature

– Production flow rates

throughout life of project

• Materials

– Internally coated carbon

steel

28

Production Equipment - Tanks

• Working Tank

• LACT Tanks

– Circulation system

– Agitators (mixers)

• Design Considerations

– Daily production rates

– Operator response time

• Materials

– Carbon steel

– Partial internal coating

29

Production Equipment - Vapor Recovery

• Design Considerations

– Gas volumes

– Oxygen

– Regulatory compliance

• Materials

– Vessels: CS hot side / SS

cold side

– Piping & Valves: CS hot

side / SS cold side

Downhole Design Considerations

Tubulars- Both Production and Injection Wellbores

Metallurgy for Pumps and Packers

Artificial Lift

C02 Operations Features/Operator Differences

Review operational feature differences and

similarities in regard to production practices

including artificial lift.

Review operational differences in the handling of

the produced gas stream for the flood injection.

32

Surface Facilities Options

• Reinjection of associated gas produced (Often Referred to as Blood, Guts, and Feathers {BGF})

– Compression and usually dehydration

• Reinjection of associated gas stream coupled with C4+ extraction for sales

– Compression, dehydration, rough hydrocarbon cut, CO2 removal

• Processing of the associated gas stream into C2+ for sales and CO2 for reinjection

– Compression, dehydration, hydrocarbon recovery (distillation, CO2

membranes, etc.)

Anthropogenic Sources and

Separation Technologies

Industrial Sources of CO2

Blue Strategies, 2010

CO2 Capture Technologies

Pre-Combustion

IGCC – FutureGen

Membranes

Oxy-Combustion and Chemical Looping

Pure Oxygen vs. Air in Boiler

Post Combustion

Adsorption

Solvent

Integrated Environmental Control Model – WWW.iecm-online.com

Discuss and Evaluate all CO2 Capture Processes

CO2 Capture Demonstration Projects

Performer, Location, Capture Technology ,Capture Rate (tonnes/year) , Start Date

Pre-Combustion Capture

Summit Texas Clean Energy Odessa, TX Selexol 3,000,000 2014

Southern Company Kemper County, MS Selexol 2,000,000 2014

Hydrogen Energy California Kern County, CA Rectisol 2,000,000 2016

Post-Combustion Capture

Basin Electric Beulah, ND Amine 5,00,000 - 1,000,000 2014

NRG Energy Thompson, TX Amine ~500,000 2015

American Electric Power New Haven, WV Chilled Ammonia 1,500,000

2015

Oxy-Combustion Capture

FutureGen 2.0 Meredosia, IL Oxy-Combustion 1,000,000 2015

Coal Fired Power Plants

Gas Plant Processing

Dehydration/Compression

Sulfur Removal/Recycle Plants

Gas Handling - Dehydration

• Design Considerations

– Is dehydration necessary?

– Wet CO2 flow rates

– Operating pressure

– Operating temperature

• Materials

– Contactor: Stainless steel

– Regeneration Skid: Carbon

steel and stainless steel

Gas Handling - Compression

• CO2 compression differs

significantly from natural

gas compression

– Materials

– Compressor Speed

– Drivers

– Cooler Design

Hess Seminole Plant Schematic

Hess Seminole Plant Expansion Schematic

ROZ (Residual Oil Zone Development)

The following slides have been added to report a new development

that the Permian Basin C02 APTA group has been actively

involved in.

Further information on the research and actual demonstration work

that is going on in the ROZ zones is available at the website

http://www.residualoilzones.com

Origins of Residual Oil Zones

and Mother Nature‟s Waterflood

Background and Understanding

45

First basinwide study of Residual Oil Zones (ROZ‟s) in the

upper Permian carbonates in the basin.

• It is supported by the Research Partnership to Secure Energy for America (RPSEA) and industry partners.

• ROZ‟s have historically been interpreted as being long Transition Zones. Although the upper portions of TZ‟s/ROZ‟s have long been assumed to contribute to production in some fields, until recently their potential as a CO2 recovery target has not been exploited.

• Development wells, scheduled to test deeper horizons, have often been drilled through zones with good shows in samples, porosity and oil saturation in core, and where the zones are calculated to be oil productive. These wells, however, have a poor record of successful completions.

46

Where we are today

• ROZ‟s appear to be common in Leonardian and Guadalupian carbonates on the Central Basin Platform and Northwest Shelf.

• Exploitation of thick ROZ‟s associated with many of the major San Andres fields has begun with CO2 projects underway at Wasson, Seminole, Vacuum, Means, Goldsmith, and Hanford Fields, with others planned.

•

• Production from ROZ‟s and anecdotal evidence from exploration wells, coupled with the theory/model of the development of Residual Oil Zones (ROZ‟s), has led to the belief that there are potentially billions of barrels of additional producible tertiary reserves in the Permian Basin and elsewhere.

47

Original Oil Accumulation Under Static Aquifer Conditions

(A Hypothetical Example)

W E

48

TYPE 1. Original Accumulation Subject to a Eastward

Regional Tilt & Forming a ROZ.

The new O/W contact is horizontal

The base of the ROZ is tilted

Oil would have migrated out of the basin.W E

TYPE 1 ROZStatic System

49

TYPE 2. Original Accumulation with a Breached, then Repaired,

Seal, forming a ROZ/TZ.

A horizontal O/W contact on the main pay and the ROZ.

May also “de-gas” the reservoir.

Present in the Permian Basin.

ORIGINAL POST BREACH

TYPE 2 ROZ

Static System

TYPE 3. Change in Hydrodynamic Conditions, Sweep of the lower part of the Oil Column

and Development of a Residual Oil Zone.

Oil/Water Contact is Tilted

Base of the ROZ locally almost flat, regionally tilted.

TYPE 3 ROZ

Areas with ROZ without associated field

Dynamic System

51

Attributes of the ROZ Types

So Let’s Examine the Evidence for

Type 3 in the Permian BasinFirst, Let’s Look evidence for OWC Tilt

Closing of the

Midland Basin** Glorieta Shelf Margin

The direction of OWC tilt may be influenced by the age of the producing interval and it’s relationship to the shelf margin

Brown, 1999

Distribution of Tilted Oil-Water Contacts in the

Northern Shelf and Central Basin Platform Areas of

the Permian Basin*

* Brown, 1999,

** Ward et al, 1986

53

Tilted Oil Water Contacts

• New Axiom – “ If you have a tilted

oil/water contact in the San Andres, you

have a ROZ.

• If you have an ROZ…….find a contract for

CO2.

• Be prepared for big hug from royalty owner.

SE NM San Andres Dolomitization Trends (First Draft)

Karsted Pgs (U. San Andres) Outcrop

Bottomless Lakes Recharge Field

2

3

3

5

4

42

???

Although we are gathering data for any ROZ, The first

model will concentrate on the Artesia Fairway and the

west side of the Central Basin Platform.

Permian Basin Plays,Dutton et al (2005)

DST and Water

Chemistry Data collected

from various sources,

by county

32/291

60/419

28/46

1/1

101/419

Wells by County

346/1563DST / Water Chem

98/328

Chaves

26/59392/1792

57

The new Residual Oil Zone Paradigms

• Large intervals and areas have been swept by “Mother Natures Waterflood” which occurred post/syn oil emplacement.

• ROZ‟s have the same saturation characteristics as mature waterfloods in the swept intervals.

• ROZ‟s often are interpreted/calculated as producible in Exploration Wells, and Primary and Secondary Production Environments:– Good Odor, Cut, Fluorescence, and Gas in samples

– 20 -40 % oil saturations in core

– Calculate as oil productive on logs

• ROZ‟s produce high percentage of water on DST‟s or completions, but not a “deal killer”.

• ROZ‟s originally there intervals were there were significant thicknesses (50 to 300‟) of producible hydrocarbons in producing fields AND outside the present limits of producing fields.

• This “faux-productive” appearance of ROZ‟s is presently found both beneath producing fields and in areas where there is no, or a minimum, producible oil column.

What happens when the

entire oil column is swept by

Mother Nature?

Your left with a tertiary

recovery target.

What We Are Learning About the

Characteristics of ROZs

Mud log and Cutting Shows, Sulfur and Sulfur

Water, Leached Fractures, Pervasive Dolomitization,

Bow Shape Logs, Comparisons to MPZs, Nature of

Reservoir Fluids, etc.

Northern Central Basin

Platform Area

T/Glorieta

DST 486’ Sulfur H2O

5000’

5500’

6000’

6500’

First Currings Sample Shows = 5330’

PDI

Base of Cuttings ‘Strong” Flour = 5620’

ROZ

Gamma Ray Neutron Log

62

Latest Fairway Mapping (Still very Preliminary)

63

NINE ROZ PROJECTS ARE

ACTIVE(ALL IN PERMIAN BASIN TO DATE)

References: Oil & Gas Journal Annual Production Report, Apr 19, 2010, and Melzer

Consulting (May 2010)

64

Our ROZ Conclusions to Date

• Intervals Below the OWC with Shows Are More Appropriately Viewed as Residual Oil Zones and Owe Their Origins to a Variety of Causes Beyond Transition Zones

• PB ROZ Prevalent Type is Type 3: Laterally Flushed

• ROZs Can be Very Thick and Contain Huge Amounts of Oil

• New Paradigm: “Look at Intervals with „Shows‟ Below the OWC as Targets for EOR” and, also, Look Between Fields

• Considerably More Research is Needed; We Aren‟t Starting Over but Because These Targets are Present, Very Large and Commercial, There Are a Lot of New Concepts to Grasp

Published

Seminole Field Water

Saturation Profile.

Field/Unit

MPZ OOIP

(BB)

TZ/ROZ

OOIP

(BB)

No. of

Fields

No. of MPZ

Fields with CO2-

EOR Projects

No. of

Fields with

TZ/ROZ CO2-

EOR Projects

1. Northern Shelf Permian

Basin (San Andres) 13.0 13.2 13 5 1

2. North Central Basin

Platform (San

Andres/Grayburg) 2.9 2.6 6 2 1

3. South Central Basin

Platform (San

Andres/Grayburg) 9.9 7.9 16 5 0

4. Horseshoe Atoll (Canyon) 5.4 2.9 10 4 2

5. East New Mexico (San

Andres) 2.3 4.1 11 2 0

Total 33.5 30.7 56 18 4

56 fields in five major Permian Basin oil plays that have potential for significant

TZ/ROZ resources were identified by ARI.

TZ/ROZ OOIP in these 56 fields is estimated to be 30.7 Billion Barrels.

Calibrating the Oil Recovery Models and EstimatingTechnically

Recoverable ROZ Oil – MPZ and TZ/ROZ Oil in Place

Conclusions

• Absent meaningful climate control legislation and

breakthrough on the cost of separation, interest in CCS

is waning

• The market is oversaturated in CCS training offerings

• CCS training is clearly price sensitive

• The CCS training market is demanding more online,

self-paced, less expensive alternatives to traditional face

to face course work

• CO2 EOR as storage is an important aspect of CCS

Permian Basin CCS Training Center

Questions?

Robert D. Kiker

[email protected]

432.552.3432